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NBN chief denies role in US disaster

David Barbeler

The executive appointed to run the national broadband network will "vigorously defend" the actions he took while boss of an American gas company before two of its pipelines exploded and killed nine people.

Bill Morrow was appointed as chief executive of NBN Co by the Abbott government in December after stints at major overseas infrastructure companies.

One was at Pacific Gas and Electric (PG&E) in the US, where he was chief operating officer in 2006 and chief executive a year later, before leaving in August 2008.

Four months later, a man was killed and five others were injured in Rancho Cordova after a PG&E pipeline explosion was triggered by a teenager lighting a cigarette.

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Two years after that, another pipeline exploded in San Bruno, killing eight people, injuring 58 and destroying 38 homes.

Investigations found safety faults with both pipelines. Hundreds of millions of dollars in fines, compensation and restitution have been paid by the company.

Mr Morrow is named in an unsettled consolidated shareholder lawsuit along with 21 other PG&E executives. The company stands accused of putting profits and bonuses before safety.

The suit was filed by PG&E shareholders, who are seeking the return of "lucrative executive compensation packages allegedly approved by senior management at the same time safety budgets were being slashed".

Mr Morrow told a Senate estimates hearing into NBN Co on Thursday he would "continue to vigorously defend the proceedings".

"When the legal process runs its course, it will confirm that my fellow directors, officers and I acted with care, in good faith, and in the best interests of PG&E at all times," he said.

Mr Morrow brought up the issue with the board of NBN Co and the government before his appointment.

He said parties named in the suit included almost every person who was a director or senior officer at PG&E between 1995 and 2013.

"As the matters are still before the US courts, I am unable to comment any further, other than to make one final important point.